Question

If Rogers, Incorporated, has an equity multiplier of 1.55, total asset turnover of 1.90, and a profit margin of 6.5 percent, what is its ROE

Answer 1

Rogers, Incorporated ROE is 19.14%

What is return on equity?

Return on equity (ROE) is the measure of a company's net income divided by its shareholders' equity. ROE shows a corporation's profitability and how efficiently it generates those profits.

Return on equity(ROE) is computed as:

= Profit margin * Total asset turnover * Equity multiplier

Given that:

Profit margin = 6.5%

Total asset turnover = 1.90

Equity multiplier = 1.55

Then,

Return on equity(ROE)

= (1.55 * 1.9 * 0.065)

= 19.14%

Hence, Rogers Incorporated ROE is 19.14%

Learn more about ROE here : https://brainly.com/question/2681599